There is this myth that if you file for bankruptcy, you won’t qualify for a home loan in the near future. As an Arizona bankruptcy lawyer and Arizona real estate lawyer, I always advise clients that they will be able to qualify for financing so long as they save money for a downpayment and continue to improve their credit.
An Arizona bankruptcy lawyer must remind clients that although bankruptcy may adversely impact a person’s credit immediately after filing, credit will start rebuilding shortly thereafter. The bankruptcy filing doesn’t stay on a person’s credit report for as long as most people think.
A common question I get is how long must a person wait after a foreclosure, short sale or bankruptcy before that person will qualify for another home loan. Although an Arizona real estate lawyer or Arizona bankruptcy lawyer is not a “credit expert”, Fannie Mae has established a number of different waiting periods for so called “derogatory credit events”.
A person facing foreclosure or bankruptcy is understandably concerned about how such decisions impact a person’s credit. The reality is that no one knows for sure how these credit scores are computed. An Arizona bankruptcy lawyer or foreclosure lawyer may be able to provide some tips and tricks that a person can use to minimize credit damage.
There are many myths about the benefits of short sales. The downside of short sales may be much more than the upside because the legal ramifications and adverse consequences could be more severe than opting for a foreclosure. Always consult with an experienced Arizona real estate lawyer, an Arizona foreclosure lawyer or an Arizona bankruptcy lawyer before considering a short sale.